To ‘dot-brand’ or not to ‘dot-brand’. ICANN’s new gTLDs pros and cons

dot-com, dot-brand, ICANN, gTLDNow that ICANN’s .XXX gTLD Sunrise registration periods are in full swing and companies are rushing to block their domains, attention is shifting back to what the repercussions of adding new gTLDs will be. Back in June, we wrote about ICANN’s announcement of expanding the number of top-level domains to include new brand-related terms such as .google, .apple, or more generic terms such as .music or .law.

Our Senior Account Manager, Jamila Hunte, mentions that “there is the staggering $185,000 initial application (and evaluation) fee that goes to ICANN plus an additional $25,000 per year administration fee.  Next, add in legal and consulting fees, plus the cost to maintain the registry.” Experts have speculated costs to be more in the six digit area, starting at $500,000. This will probably put small firms out of the game. But for larger firms who own a key trademark, ICANN supporters feel these new gTLDs will help fight fraud, phishing, brand abuse and increase brand loyalty, saving them money in the long run.

Members of the international business community, on the other hand, are pointing out that the benefits of owning and managing a dot-brand domain do not out weight the risks associated with it. The problem they are highlighting is that most large corporations have numerous trademarks and they would have to register each one of them to prevent cybersquatting, with costs reaching the millions of dollars. Companies such as Ikea and Motorola have already expressed their concerns as they believe there will be little benefit for them but an increase in costs and in-house work for companies. In addition, when the floodgates open, there will be several hundreds of new top level domains. With so many trademarks in existence, there are bound to be trademark conflicts.

ICANN has explained that there will be security measures put in place as well as high barriers to entry to prevent such disputes. The main barrier will – of course – be the price set up to register your own gTLD. As mentioned before, this move will cost companies more than a pretty penny. The application process is designed to be extremely rigorous with various complex technical and business considerations that might condition a company’s desire to apply. In a recent edition of IP Counsel, their guest speaker Mary Wong, Professor of Law at the University of New Hampshire School of Law, mentioned that in order to satisfy the need for defensive registration, ICANN has in place two RPMs (Right Protection Mechanisms); the UDRP or Uniform Dispute Resolution Policy and a more recent URS or Uniform Rapid Suspension. Both will adequately protect the valid and legitimate concerns of trademark owners. Companies will face the decision of either to go through the entire process of registering their own dot-brand or risk spending time and resources litigating a dispute with a possible cybersquatter in the near future.

Regardless of what measures ICANN or any governing agency put in place, it will always be the company’s responsibility to look after its own interests and brand reputation. Acquiring a dot-brand is an important decision and one that needs to be addressed fairly quickly, but it is up to the company’s management team to decide if a dot-brand is exactly what you need and what difference it makes to have it.

BrandProtect will continue to provide updates on the latest developments on the new gTLD’s as they unfold.  Stay tuned for more updates and in the meantime protect your Rights, Revenue and Reputation!

 

 

About Adriana Munoz

Adriana is a Social Media Coordinator at Greybrook Capital. She assists in the developing, monitoring, coordination and execution of the social media campaigns of BrandProtect, Internet911, IDfraudProtect, among others. Her training in Marketing and Social Media allow her to keep in touch of internet trends and see them through a marketers eye. She also blogs about the dangers and threats Social Media can have on a company's online reputation and image.

Adriana graduated from York University with a BAS - Honours Marketing and attended Seneca college obtaining an ROA in Computer Graphic Design & Layout.

Comments

  1. But what does the future really hold for ICANN’s new .Brand gTLDs?

    Bearing in mind that ICANN won’t allow applications from individuals or sole proprietorships, effectively ignoring the interests of the vast majority of Internet users worldwide. Add in non-refundable deposits of $185,000 per extension, $500,000 for “integration” plus potentially unlimited annual costs and expenses etc, and how many new TLDs will actually see the light of day? Is this a commercial venture or simply a loss making exercise in vanity?

    ICANN’s main aim has always been to convince Internet users they’re the only game in town and to try and herd everyone into a tiny part of an otherwise infinite universe….but that’s like telling people that the only place they can shop anywhere on Earth is a “convenient” Kroger store in Cincinnati. Yes, the current ICANN Internet set-up may be “convenient” right now, but then some years ago sending a telegram was convenient and sending an email meant inventing the computer (and World Wide Web). So….before making any “investment”, it’s worth considering whether instead of bringing organisations to the forefront, ICANN’s new TLDs will actually isolate you. It’s also worth considering that the Internet is evolving with more fitting and less expensive options coming on-stream.

    Increasingly ICANN finds itself under pressure to modify. The rules have changed and Alternatives are already available; for example as well as “Dotcoms”, there are now free “Dashcoms” (e.g. create domains like “business-com” or rock-music” or “happy-birthday” at zero cost). As ICANN realises that competition is finally at hand, the true value (or the true cost) of their TLD “opportunities” will become all too apparent. Still, look on the bright side, at least ICANN and their associates will have made money from your efforts.

    Disclaimer: Author provides dashcom (not dotcom) domain names.

    • Thank you for your comment, the question you raise is very valid.

      One can only hope that an institution such as ICANN has done the necessary research in order to reach a conclusion where new gTLDs are necessary. If, regardless of costs and profits, by the end of the day security measures are increased and cybersquatting is avoided then this new venture will be worth the time and resources put into it.

      As we mentioned in our blog, it is the responsibility of every company to be proactive before purchasing a gTLD – that involves looking for other options as well as preparing for how will their current reputation management handle these events.

Leave a Reply